Opportunities and Challenges of Omanization in the Hotel Industry in the Sultanate of Oman - Dissertation Example

Opportunities and challenges of Omanization in the hotel industry in the Sultanate of Oman

Chapter 5: Discussion

5.0 Introduction

This chapter analyzes and discusses the findings from the study and what the results mean as well as their implication on matters of policy and the way forward. Of importance in this section is tying up what the researcher learned from the data collection and analysis with the research objectives and ensuring that there are some knowledge and learning that comes out of the study. Therefore, this chapter will look at the practical applications of the information and new ideas that the findings present and thus offer a roadmap that the policymakers can use in advancing the Omanization policy in a more effective and efficient manner. As such, the analysis here is forward-looking and aimed at offering guidance to the authorities as they seek to create a mechanism to make Omanization a reality in the hotel and tourism sectors as well as other sectors of the country’s social and economic setup.

5.1 Localization Policy and Its Effect on Human Capital Development in Oman

The localization policy is the attempt by the Omani government to develop the Sultanate’s economy away from oil, but also ensure that the locals fully take part in the economy but also make sure that there is a sustained growth of the economy in a manner that will promote the country’s independence and sustainability (Maria, 2015). It is a paradigm shift meant to inspire native Omanis to take pride in participating in nation building and feel a sense of nationality in their endeavors as they go on with their daily activities. According to IBP (2015), it has the intention of reducing the high unemployment levels among locals and ensures that they can compete on an equal footing with the expatriate workers who have flooded the market in recent years.

The hospitality sector is one of those targeted as part of the localization initiative. Many people believe that the country is on the right path with the steps taken to have a higher participation of native people in the labor sector and the economy as a whole (Laipson, 2002). It is important to note that the state’s efforts towards developing a local workforce come as part of a larger plan to ensure that businesses in the country can hire highly- skilled and qualified personnel without having to turn to foreign workers.

People in Oman believe that the government programs remain on track to achieve their goals and that they are sound for the country’s economy (Littlejohn & Watson, 2004). The fact that more than two-thirds of all those surveyed confirmed their belief in the effectiveness of the government’s measures is enough indication that the steps taken have the blessing of the population in the country and that most of the people support them. Matters of policy require the approval of the masses and the continued success of any strategies implemented has a lot to do with having the public behind the state and actively supporting the steps that the government takes.

Enhancing the competencies of the local people is a priority for the government if its policies are to yield any success. In tandem with the research by Harry (2007), the hospitality sector- just like any other- highly depends on having individuals with the proper qualifications and competencies working in the industry. As such, having Omanis that possess the requisite academic as well as professional requirements to match what the industry demands places them at a better place to take up various roles in the industry. These views represent the position that about two- thirds of the respondents in the study held and goes to show that the people there value the importance of acquiring some form of learning to help them in their quest to succeed in the jobs they take up.

While the Omanization policy has set the country on a path to having more of its residents taking up the path towards economic liberation, the government needs to focus on empowering the recipients to take up their rightful positions in the proposed system (Baporikar, 2012). As such, it needs to focus on training and development programs so that it can have its people on an equal footing with foreign nationals who may hold a comparative advantage over the residents. It will be of insignificant use to have a policy framework in place without having people and a workforce with the proper skillset as well as the right temperament to do the work set for them. In essence, therefore, the governments while promoting the steps towards Omanization must also come up with means to ensure that the locals are ready for the change.

The country still has a long way to go if it is to realize the full benefits of having the Omanization initiative. Apart from the human development aspect of it, there is also need to strengthen institutional capabilities and the capacities of the nation’s organs to champion the various dimensions of the framework. As such, the state must come up with ways of promoting the discourse among the different stakeholders on how best to come up with the most successful blueprint for delivering its vision and ensuring the maximum gain for all concerned. Therefore, the state actors and policy makers also have to factor other considerations that will enable them come up with a 360 degrees solution for the nation and ensure sustainability.

One of the concerns that show the amount of work that Oman still has to do regarding its localization agenda is the fact that there exist marked wage differentials between foreign workers and the locals. The fact that 70 percent of those that took part in the survey believe there exist differences in what the locals earn compared to what expatriates would make for a similar job is a pointer to the notion that the employers think that locals still do not have what it takes. This concurs with the research by EPC (2010) on the same issue. Looking at it in another dimension, one might believe that it is a case of employers thinking that the locals may not be as productive, and that underlies their preference for imported labor. Whatever the case, having instances where native Omanis receive less compensation than expatriates for the same amount of effort is something of deep concern.

5.2 The Opportunities and Challenges Facing the Implementation of Omanization in the Hotel Industry

The Omanization policy presents the country with an immense opportunity to develop its local workforce and enable the natives to have a meaningful contribution to the economy. The national tourism strategy and its development mark positive steps in the quest to have more homegrown talent working in the hospitality and tourism sector. That is the view held by more than half of the respondents who participated in the study. They seem convinced that the country may have found the silver bullet with which to address the problem of inequity in the labor market and have a means of ensuring that the Omani Nationals have a better chance of getting jobs in the private sector.

The suitability of Omanis to the hospitality industry and their preferability by the employers in the country is still an issue. It seems as though the expatriate workers beat the locals in every parameter possible when seeking work in the tourism industry. Approximately 55% of all those that took part in the study held the opinion that foreigners remained better suited to hospitality jobs when compared with the locals- an opinion shared by the propositions of the research by Al-Lamki (2005). As such, they thought that expatriates formed more effective workers than the natives. Some of the possible reasons for this state of affairs include language barriers that the locals struggle with and the fact that most of them know little outside the native dialects. Given the fact that many of the visitors come from abroad, it would be important to have multilingual staff working at the various hotels in the country as they would be better placed to interact with tourists. Of even more importance is the attitude that Omanis have towards the industry and the work. The fact that they believe foreigners to be more suited than them for the jobs could point to a scenario where they remain disinterested in such jobs even when they may be available.

5.3 Perceptions of Hotel Owners and Omanis towards the Effectiveness of the Omanization Policy

While it is clear that the government has lead the way in setting the agenda for Omanization, its success lies in the willingness and the eagerness with which the people take up the initiative. Half of the respondents responded that they had an interest in working in the hotel sector and attending the training sessions organized by the industry. That number may not be as impressive as it shows only half of the natives had an interest in the programs that would make Omanization a reality. As such, there is still a long way to go before having the whole country embrace the ideals of the localization agenda and that is critical for the success of the initiative. Having the policy measures alone does not count because it is crucial that the residents show a willingness to take up the opportunities opening up as a result of the measures adopted by the state for the benefit of its people.

While the Omanization agenda may have a long way to go before mainstreaming among the people of Oman, most of them believe that it is a step in the right direction for their careers and that it can help them advance themselves in their quest for career development. What may be of most importance for the local community is how much the policy undertaking will them fast track their careers and fulfill their potential. Noteworthy, 80 percent of the respondents indicated their conviction that Omanization was the right step that the government took and that it would be of much benefit to individual Omanis in their quest to make the most of themselves as initially suggested by Al-Balushi (2008). As such, they supported the initiative because they believe it will help them become the best they could become.

The employers in Oman feel that several issues hinder the employment of the natives. The most pressing concern for them is their lack of readiness to take up jobs in hospitality as well as other sectors. The majority of them feel that these people would require extra training to bring them up to speed with the demands of the work they would do and that would require a lot of time and resources. For example, they have very little knowledge of languages outside the ones spoken in the country, and that puts them at a relative disadvantage. Additionally, these people may not possess the most impressive attitudes and work ethics as requires working in the industry. It is, therefore, a concern for many of the people that own the hotel businesses because they would like to employ people with the right temperament in their organizations. That means the success of any interventions will have to consider effecting a change in people’s mental outlooks because that is an important factor to how effective they become in their work.

Productivity is one of the topmost considerations for any employer in any given sector. The priority for many businesses has individuals that produce the highest output at any given time and thus, aid the enterprises in their quest to maximize their profitability. There have been concerns that Omani natives may not be as productive, and that hampers their chances of finding employment as the employers prefer foreigners that are more productive. This view as held by the owners of business entities is a damning indictment of the labor market in Oman and a wake-up call for all those involved.

5.4 Recommendations

The Omanization program is a well- thought idea that promises to deliver the much- needed changes that will enable the participation of more natives in the economy and all the sectors thereof. The success of the policy initiative depends on the execution of several steps that will push the country closer to achieving her dreams. Education and training remain important cogs that will make Omanis more marketable and ensure that they can compete with the foreigners in the labor market. The government must match the vigor with which it has been pushing the Omanization agenda with programs to equip its people with the necessary capabilities and competencies required for them to join and grow in the labor market. That will ensure that the country has sufficient human capital that will enable it to develop in a sustainable manner.

Success in any employment scenario is much about the skills one possesses as it is about their attitude and temperament. As such, it is imperative that Omanis have the right mentality as one of the factors that will enable them to have long- lasting and fulfilling careers (Valeri, 2005). Oman still has a long way to before seeing the full results of its Omanization policy but in the meantime, it is sensible to continue working towards having a country whose workers are highly productive and ready to take on whatever tasks come their way for the betterment of the economy. Whatever happens from now onwards depends on the efforts that the government and the people do and the steps they take to make their vision a reality.